| Name |
Symbol |
6/30/07 |
Adds/Subs |
Break Even |
9/18/09 |
Change |
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Market Value |
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Market Value |
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| Peak
to Peak Analysis: June 30, 2007 through September 18, 2009. |
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| NOTE:
All Working Capital Model (WCM) results are net of all brokerage fees,
commissions, and charges (i.e. all commissions |
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| and
fees have been deducted). Nearly all figures are also net of Investment
Management fees, which are |
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|
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| deducted
from accounts quarterly, in arrears, for all but a handful of accounts. The
maximum fee for any of these accountss |
|
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| would
be 1.1% per year. It is (in my opinion) unlikely that their results, if
adjusted, would have a significant impact |
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| on
the WCM numbers. The footnotes below include important disclosures that you
should be aware of. I am |
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| certain
that there are methodologies and indices (not reported here) that did better
(and worse) than the reported |
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| numbers. |
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| The
"WCM" figures summarize spreadsheet analysis of nearly 239
portfolios for the period from June 30 2007 (the last WCM Peak market value) |
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| thru
September 18, 2009 (a high point achieved after a prolonged correction in the
markets). If you |
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|
|
| would
like to see the entire spreadsheet (without the names and account numbers, of
course), I can provide them to |
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|
| you. Many accounts are not managed precisely in
line with WCM strategies due |
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|
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| to
account owner request and specification. It is my opinion that, in most
instances, variations from the basic model are not helpful. |
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| The
information contained herein has been obtained from sources believed to be
reliable but the accuracy of the information cannot be guaranteed. |
| Nearly
all of the informatio was gathered, entered, and processed by Sanco Services
employees. We are confident that the numbers are |
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| reasonably
correct and accurate, but we have no intension of having them audited or
checked in any manner |
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| |
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|
<Summary> |
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<Summary> |
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<Summary> |
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|
6/30/2007 |
Adds & Subs |
Break Even |
9/18/2009 |
% Change |
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|
Market or |
|
Market or |
Market or |
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|
Unit Value/Price |
|
Unit Value/Price |
Unit Value/Price |
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|
| Brkshire "B" |
BRKB |
3,605.00 |
0.00 |
3,605.00 |
3,330.00 |
-7.63% |
|
| WCM Accounts |
WCM |
50,710,000 |
841,844 |
51,555,844 |
46,662,104 |
-9.49% |
|
| Fid Contra |
FCNTX |
70.38 |
0.00 |
70.38 |
54.56 |
-22.48% |
|
| DJIA |
.DJI |
13,408.00 |
0.00 |
13,408.00 |
9,820.00 |
-26.76% |
|
| S & P 500 |
SPX |
1,503.35 |
0.00 |
1,503.35 |
1,068.30 |
-28.94% |
|
| Longleaf Ptnrs |
LLPFX |
38.51 |
0.00 |
38.51 |
23.22 |
-39.70% |
|
| Legg Mason Value |
LMVTX |
74.95 |
0.00 |
74.95 |
36.18 |
-51.73% |
|
| Sel Amr Shs |
SLASX |
49.38 |
0.00 |
49.38 |
23.22 |
-52.98% |
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Average = |
-29.96% |
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| General
Footnotes and Disclosures: |
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| (1)
Information provided by LMK Wealth Management from Quarterly Performance
Reports prepared by |
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| Mid
Atlantic Capital. Adds/Subs column figures are also from the MACC Reports.
Note that Mid Atlantic |
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|
| Capital
was the sole Broker Dealer used in the compilation of the WCM numbers and
that LMK Wealth Management was the sole |
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| independent
broker used for account transactions. The reasons for this |
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| relationship
with LMK are outlined in the WCM user's ADV II, Schedule F. This disclosure
document |
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|
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| is
available to you upon request. |
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|
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|
| (2)
Figures presented are for all WCM accounts active on 09/18/09. |
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| (3)
WCM accounts normally contain both equity and income securities. Most income
securities are |
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|
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| in
the form of Managed Closed End funds. |
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| (4)
The separate "Spreadsheet Disclaimer" applies to the information in
this spreadsheet. |
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| (5)
A separate Disclosure & Glossary of terms is available for the MACC
Performance Reports but the reports |
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| themselves are confidential, and not
provided. |
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|
| (6)
The information contained in this spreadsheet is for information only and
there is no intended implication that |
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| other
funds or methods didn't have better performance during the time period. |
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|
| (7)
Figures for the DJIA and S & P were taken from public sources; figures
for the three mutual funds reported |
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| are
taken from Streetscape historical data. |
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|
|
| (8)
The funds selected were picked because they are the last three year's winners
of the Morningstar "Fund |
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|
| Manager of the Year" designation. |
ear"
designation. The LMVTX fund is included because fund manager Bill Miller
received the manager of the |
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| of
the year award in 2006 for his outstanding value fund performance. |
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|
| (9)
This document is provided for information only and none of the fugures have
been audited, examined, or studied by anyone. It is not to be |
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| redistributed,
copied, or desseminated in any way or in any medium under any circumstances. |
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|
| (10)
The figures presented here are provided as an illustration of relative
performance for this period of time only. |
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| Nothing
should be presumed with respect to any past or future time period,
overlapping with this one or not. |
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|
| Clover
Capital Rule Disclosures: |
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|
|
| (1)
Economic and market conditions were among the worst in modern history during
2008. These conditions |
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| may
have seriously impacted the performance of all market measures and
participants presented here. |
|
|
|
| (2)
All WCM results are net of all brokerage fees, commissions, and charges (i.e.
all commissions |
|
|
|
| and
fees have been deducted). Nearly all figures are also net of Investment
Management fees, which are |
|
|
| deducted
from accounts quarterly, in arrears, for all but a handful of clients.
Figures with respect to six |
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|
|
| clients
who pay fees directly are not separated in this Summary. The maximum fee per
year for any of these clients |
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| would
be 1.1% per year. |
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|
|
|
| (3)
All dividends, interest, capital gains, and capital losses are included in
the WCM figures.The |
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|
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| methodology
requires that only income paying securities are included in portfolios, and
the method- |
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| ology
also emphasizes targeted profit taking. In 2008, market conditions would have
caused |
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|
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| lower
than normal profits, taken whenever they were available. Major losses taken
on bankrupted entities (Lehman, |
|
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| Wash
Mutual, Indymac) and to fund disbursements are also included. The income
requirement |
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| and
profit-taking discipline absolutely enhanced the WCM performance numbers---in
my opinion. |
|
|
|
| (4)
As with all investment styles, the WCM methodology can produce both profits
and losses, dependent |
|
|
| on
market conditions and other factors that may or may not exist during any
reporting period. |
|
|
|
| (5)
The WCM results are "live" presentations of all accounts under one
manager using the WCM methodology at both dates included |
|
| in
the spreadsheet. The portfolios are mostly "mixed" or
"balanced" portfolios with varying percentages |
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| of
Income Closed end funds. |
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| Mathematically,
I believe that excluding these figures would have improved the Sanco figures,
making |
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|
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| them
less negative. The indices included in the Summary Table, to my knowledge,
include no CEFs at all. |
|
|
| (6)
The Working Capital Model investment management methodology was created |
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|
|
| and
developed by the principal of Sanco Services, Steve Selengut, and has evolved
to its present state over the past |
|
|
| thirty
+ years. I do not believe that a similar approach was used by any of the
enties or indices whose numbers |
|
|
| are
included in the Summary Table. This investment methodology has remained the
same in principle |
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|
|
| and
in practice for many years. |
|
|
|
|
|
| (7)
The purpose of the information in the Summary is to encourage investor's to
learn all they can about WCM investing by |
|
|
| purchasing
"The Brainwashing of the American Investor. |
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| Revision
Date: 11/12/09 |
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